Federal Reserve Bank of Atlanta President Raphael Bostic on Monday said that he expects three rate hikes in 2022, in a reiteration of remarks made over the weekend. He clarified that a 50bps move in March was not the Fed’s preferred policy action and that the Fed is not fixed …
Read More »Fed’s George: Aggressive balance sheet reduction may allow shallower rate path
Kansas City Fed President Esther George said on Monday that the Federal Reserve can move sooner to start reducing its bond holdings than in the past and aggressive action to shrink the US central bank’s portfolio.“What we do on the balance sheet will likely affect the path of policy rates …
Read More »Daly: Fed’s QT Could Still Support US Economy
Federal Reserve Bank of San Francisco President Mary Daly on Monday noted that if the Federal Funds rate was to reach 1.25% by the end of the year, that would be quite a bit of tightening but still supportive of the economy. Seemingly, Daly is talking about the possibility of …
Read More »SNB Chair Jordan: We have to take inflation developments seriously
Swiss National Bank Chairman Thomas Jordan told Swiss broadcaster SRF on Monday that we have to take inflation developments seriously, and that while some of this inflation is certainly temporary, all central banks have to be careful it doesn’t become permanent. Jordan reiterated that inflation is expected to come down …
Read More »NZD/USD Rebounds Amid Improved Risk Appetite
The NZD/USD pair is enjoying a modest rebound from the 14-month lows it struck last Friday amid improved risk appetite. Traders will have plenty of US data, Fed speakers’ statements and remarks, in addition to Q4 NZ jobs data to monitor this week.A more risk-on mood in global equity and …
Read More »S&P 500 Surges Back, Ends Week In The Green Territory
The US equities surged in late trade after a broadly positive session as Fed bets eased after softer wage data. The S&P 500 leapt to close above the 4400 level again to close 2.4% higher and end the week positive. Apple led the charge after positive Q4 earnings and record …
Read More »US Personal Income Rises Less Than Expected, Personal Spending Retreats
A report released by the Commerce Department on Friday showed personal income in the US increased by less than expected in the month of December.The Commerce Department said personal income rose by 0.3 percent in December after climbing by an upwardly revised 0.5 percent in November.Economists had expected personal income …
Read More »FOMC likely to hike rates by 125 bps over the course of 2022
Market observers believe the FOMC will announce the commencement of balance sheet reduction at the July 27 meeting. They look for the Federal Reserve to hike the Fed Funds rate by 125 bps in 2022.It is likely that the Committee will hike rates by 25 bps at the March 16, …
Read More »Fed’s Kashkari Expects Fed To Raise Rates at March Meeting
Federal Reserve Bank of Minneapolis President Neel Kashkari said on Friday that he expects the Fed to raise rates at the March meeting.With inflation higher and lasting longer than expected, the Federal Reserve needs to take its foot off the monetary gas pedal “a little bit” to address imbalances between …
Read More »Gold Retreats As Traders Digest Fed’s Statements
Gold was lower in midday markets on Wall Street, losing some 1.4% at $1,795. The price of gold fell from a high of $1,822.18 and had reached a low of $1,791.86. Equity markets initially bounced in the aftermath of the FOMC driven sell-off yesterday. However, they started to slide again …
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